A hotel ballroom was needed for a public hearing required by the governor to address Harrisburg's failure so far to come to an agreement on a financial recovery plan.

Under Gov. Tom Corbett's fiscal emergency declaration a week ago the mayor met with city council and the state Monday night as directed to begin working on a solution to the city's $310 million debt or face a state takeover before the end of the year.

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Mayor Linda Thompson said at the outset of the meeting what she wants to avoid.

"I don't want anyone coming in here and telling us what to do," Thompson said. "All of us ran hard to become elected officials. The people put us in this office to serve their interest no an appointed receiver."

Council agreed to start working again using the original Act 47 plan developed by the state as their blue print.

Every plan council has rejected in the past called for Harrisburg to sell its assets to pay down the debt and does not penalize the county, the state, the bond companies or insurers who signed on to the bad incinerator investment.

"I don't know how, by taking away our assets, our money generating assets, and not giving us new assets and new revenue generators, that we could possibly survive," said council member Brad Koplinski.

"We want something in motion and to be working but we want something that is fair especially to our residents," council member Eugenia Smith said.

The council majority has filed for bankruptcy protection but will have to wait for a court decision to determine if it's legal.

Thompson meanwhile said she wants to work out a plan now that will avoid bankruptcy or a state takeover.

"I believe that all of us in this room are capable. With our backs up against the wall, (we) can come together in the interest of all the people we claim we're serving and get this done," Thompson said.

The first meeting ended with some agreement to work toward a solution.

Another meeting will be held next week where the county and other stakeholders are required to take part.